A new generation of affluent homebuyers powered by a surge in inherited wealth is driving the luxury home market in North America, demanding larger spaces and fancier finishes, according to a recent study that heralded “the rise of the new aristocracy.”
As reported by Bloomberg, the study was based on a survey of more than 500 consumers with at least US$1 million in investable assets. It was conducted last month on behalf of Luxury Portfolio International, a network of real estate brokerages.
Prospective homebuyers under 50 accounted for most of those shopping for homes priced at US$1 million or more, according to the report. Nearly a quarter of high-net-worth consumers between 25 and 49 said they would look for at least 20,000 square feet when they made their next home purchase; it was just 6% for respondents 50 or older.
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Other home features deemed “essential” by a large share of this segment included hot tubs (45%), commercial-grade kitchen appliances (52%), and multiple-view security cameras (54%). Proximity to good restaurants was the most important community amenity in the survey results, followed by proximity to family.
Three of five respondents under 50 said they are expecting to inherit at least US$1 million, with an average inheritance of US$3.8 million. Meanwhile, more than 171,000 families gave gifts of at least US$1 million between 2011 and 2014, according to the report, a giant leap from about 7,600 families who made US$1 million gifts between 2007 and 2010.
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